intel logo Intel profits down 14 percent

Intel has released its revenue report for the third quarter of the year, revealing a drop in profit of 14 percent, blaming a changing computer industry for the fall.

Intel has released its revenue report for the third quarter of the year, revealing a drop in profit of 14 percent, blaming a changing computer industry for the fall.

 
The chip giant brought in $13.5 billion in revenue, compared to $14.2 billion last year, with operating income at $3.8 billion, a decline on the €4.8 billion of last year, and net income of €3 billion, less than the €3.5 billion it earned in 2011. As a result, basic earnings per share were down from $0.67 to $0.59.
 
Revenue for the company's PC Client Group was $8.6 billion, flat compared to the previous quarter, but a drop of eight percent compared to last year. Its Data Centre Group brought in $2.7 billion, down 5 percent on the last quarter, but up six percent on 2011. Other Intel revenue was $1.2 billion, up six percent on the second quarter, but down 14 percent on last year.
 
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“Our third-quarter results reflected a continuing tough economic environment,” said Paul Otellini, President and CEO of Intel. “The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market.”
 
Intel expects similar revenue in the fourth quarter, predicting $13.6 billion, plus or minus $500 million. Potential sales of PCs and tablets with Windows 8 could help it recover, as more people move to mobile computing devices, powered by chips designed and built by Apple or Samsung, among others in a growing market.